please advise on my portfolio...

We are a group of 12 members and do SIP..And on behalf of these 12 i handle the demat account. At present our Portfolio consist following stocks with my view:
1) Larsen @1580 (Thinking to completely exit)
2) Vivimed labs @180
3) Heritage Foods@ 280 (Very positive, Strong Buy)
4) Pantaloons@180 (Strong Buy)
5) Tata Motors DVR@240 (Accumulate at every decline)
6) MCX@900 (5-7 years story)
7) City Union bank@90 (Accumulating at every decline)
8) Sudarshan Chemical@106 (Very positive, Strong Buy)
9) Relcap@310 (Very positive, Strong Buy)
10) Sterlite tech@68 (Accumulating on each decline)
11) Bajaj Finserv@1700 (Strong Buy)
12) Tata Steel@305 (Thinking to exit)
13) Vatech & Persistent System@640
These consist our 80% portfolio and rest are Ril, Cera, pennar, Coromandel, Syngene.....
We are thinking to exit from Larsen and Tata steel and buy some gud pharma stock like JB Chem and Torrent pharma and DHFL......

Please suggest your views on above stocksView: long term)
We are having very strong buy on heritage Foods, Pantaloons, Tata motors....

 

I think you must go about issue of portfolio building in systematic manner with proper allocation to sectors and stocks. Can you give sector allocation and stock allocation (%). How much is allocation for Pharma, Finance etc and how much weightage each stock has.

 

portfolio apart, i'm interested in how you manage the taxes? the holdings in your name? taxes in your name?

 

I think hold on to L&T,this stock may do well after one or two years.I think this is time to enter this stock .What ever present govt may do,will benefit it.This stock is proxy to Modi govt performance,if did not do well,I doubt Modi will get re elected.This is Elephant like Indian Economy, it will take time to gear up,but when it will speed up after one year,it will outperform Market.Tata steel though a good company,but after buying corus in UK ,it will not perform till it comes out of this grave yard of Corus.I am positive on Rel Cap and bullish in DHFL.

 

dear @sandeep1802 Allocation is very important for any portfolio. your strong buys should have atleast total 60% allocation of portfolio.

 

We

we formed a partnership firm and having Demat and Bank account in the name of firm itself...

 

Our portfolio allocation:
Larsen- 11%
Vivimed- 10%
Heritage- 8%
MCX - 8%
TV Today -7%
Pantaloons- 5%
Tata motor-5%
Sudarshan Chem-4%
Va Tech- 4%
LG Bala -4%
Tata steel-3%

 

Pantaloons, Sudarshan and Heritage are good choices. Continue to hold them.

Decision to exit L&T and Tata Steel should have been made a bit early.

TaMoDVR and MCX are good stories but for long term. Will test patience.

Capital First is a better alternative to Rel Cap.
Similarly Federal Bank is a better alternative to CUB.

You can consider TaGlBev, Repco Home Finance, HSIL, Granules India and JB Chemicals as some quality mid caps to add to your portfolio for long term.

All the best.

 

@sandeep1802 I think allocation is ok considering risk factor. i will advice you to keep atleast 10% of portfolio in cash to invest in new oppurtunities as they come.

 

On allocation, my advice would be to increase the allocation to PFRL, Sudarshan, TV Today and Heritage to 10% each. 10% in Vivimed is also OK. Maintain it.

Bring down MCX to 5%. maintain TaMo at 5%. LG and VaTech 5% each.

Exit out of Larsen and TaSteel completely.

Out of the remaining 30% invest in CAPF, Granules, JB chem, Repco Home and TaGlBev.

 

Thanks Parin....
Hwz DHFL in housing fin sector..It is trading only at @9-10 P/E whereas Repco trading at 30 and Capital First at 27 P/E....Looking bit expensive....
Tata Global is already under consideration...
JB Chemical - we started accumulating..
Granules India- will look into it...
We are extremely bullish on Pharma, logistics and consumption sector...Please advice good stocks in these sector...

 

We want to but we cant resist ourselves to buy good stories...Will try to follow your advice..

 

Dear Srouta....waiting for your advice....Plz have a look...

 

Repco and CAPF are witnessing good growth and are operating in niche segments. Therefore they obviously command a higher premium. These companies have huge potential.

In Pharma, My top picks are Granules, JB Chem and Torrent Pharma.

In Logistics, there is only one stock worth buying ie Transport Corp of India. Although CONCOR looks quite cheap too. May take a small exposure there. Would be a safe option.

On the consumption side TaGlBev looks the best. HSIL looks good too.

Good luck.

 

Thats a lot of brainpower and bandwidth. You could very well do your own research

 

Thnx Parin...
Your suggestions are very valuable for me...!!
Apart from these stocks and sector, anything you are positive then please share...
Any multibagger idea...

 

My highest conviction stocks which have the potential to become multibaggers in the next 5-7 years are

Pantaloon Fashion and Retail
SKM Egg Products & Exports
Sudarshan Chemicals.

The above stocks are in my portfolio.

Other stocks which can offer good CAGR growth in the next 5-7 years are

Capital First
Tata global bev
HSIL
Repco Home finance
Essel Propack
JB Chemicals
Granules India
Future Consumer enterprise

These are good quality mid caps which are capable of generating good returns for the portfolio.

All the best !!

 

Dear Sandeep,
Would like you to consider some IT names. Check out Kellton Tech, Cambridge Technology, SQS India BFSI.
In Pharma, I would suggest to build up a folio of atleast 3 co's. I am bullish on Granules, SMS Pharma, Marksans Pharma & Unichem Labs.
P.S. I am invested in all of the above stocks. I expect to gain upwards of 25% from current prices in these stocks. Pls do your own research on these names....

 

Thanks Harshie...will definitely look into these...
We are bullish on Persistent System in IT space....

 

Stocks like Shilpa Medicare, granules India, camlin fine sciences, canfin homes, srikalahasthi pipes can give disproportionate returns over a five year period. Stocks like Infosys and RiL could surprise the markets.

If you have formed a partnership firm and are going down that route, it will help you a lot to form clear parameters for investing including allocations by sector and allocations by market cap.